Fifteenth meeting of the GCF Board (B.15)

The Board, having reviewed document GCF/B.15/02 titled “Report on the activities of the Co-Chairs”:

1. Requests the Secretariat to prepare for consideration by the Board, at its seventeenth meeting, a fund-wide Indigenous peoples’ policy; and
2. Invites submissions from the members and alternate members of the Board, and observer organizations in relation to the development of the GCF Indigenous peoples’ policy by the sixteenth meeting of the Board.

The Board, having considered document GCF/B.15/05 titled “Implementation of the 2016 work plan: status of Co-Chairs’ consultations”:

1. Decides to extend consultations on the mandates given to the Co-Chairs as contained in decisions B.12/08, B.12/11–13, B.13/05 and B.14/07; and
2. Requests the Co‐Chairs with the support of the Secretariat to summarize the outcome of their consultations and to propose a draft decision in a written report to be transmitted to the Board at each meeting, in line with the Rules of Procedure of the Board.

The Board, having considered document GCF/B.15/04 titled “Guidance from the twenty- second session of the Conference of the Parties: Co-Chairs’ proposal”:

1. Takes note of the guidance from the Conference of the Parties to the United Nations Framework Convention on Climate Change at its twenty-second session, in particular UNFCCC decision X/CP.22,1 titled “Report of the Green Climate Fund to the Conference of the Parties and guidance to the Green Climate Fund”;
2. Requests the Secretariat to prepare a document for consideration by the Board at its sixteenth meeting that outlines the actions to be taken by the Board in order to facilitate an increase in proposals from direct access entities in the pipeline;
3. Decides to include, where feasible, gender consideration in all of the activities of the GCF;
4. Requests the Secretariat to include such information referred to in paragraph (b) above in its annual report to the Conference of the Parties to the United Nations Framework Convention on Climate Change;
5. Decides in accordance with paragraph 38 of Rules of Procedure of the Board to invite the Chairs of the Technology Executive Committee and the Advisory Board of the Climate Technology Centre and Network to present to the Board at its seventeenth meeting during its consideration of options for supporting collaborative research and development;

The Board, having considered document GCF/B.15/Inf.08 titled “Progress and outlook report of the Readiness and Preparatory Support Programme”:

1. Decides that, from the resources available in the GCF Trust Fund, up to an additional USD 50 million is to be made available for the execution of the Fund’s Readiness and Preparatory Support Programme (“Programme”);
2. Requests the Secretariat, recalling decision B.08/11, paragraph (j), and decision B.13/03, to present the results of the independent evaluation of the Programme to the Board no later than the last meeting in 2017, and to ensure that the results of the evaluation are taken into account when considering requests for resources for the Programme subsequent to the evaluation; and
3. Also requests the Secretariat to present the draft terms of reference for the independent evaluation of the Programme for Board consideration at the sixteenth meeting of the Board.

The Board, having considered document GCF/B.15/09 titled “Terms of reference for the annual review of the financial terms and conditions of the Green Climate Fund financial instruments”:

1. Adopts the terms of reference for the review of the financial terms and conditions of the Green Climate Fund’s financial instruments contained in annex I to this document; and
2. Requests the Secretariat to carry out such a review, with support from external consultants and in consultation with the Investment Committee, with the aim of submitting a review report to the Board at its sixteenth meeting, and no later than its seventeenth meeting.

The Board, having considered document GCF/B.15/12 titled “Terms of Reference of the Review of the structure and Effectiveness of the Technical Advisory Panel”:

1. Adopts the terms of reference of the review of the structure and effectiveness of the independent Technical Advisory Panel as set out in annex II;
2. Requests the Secretariat to commission an independent third party to conduct the review of the Technical Advisory Panel’s structure and effectiveness in accordance with the terms of reference adopted;
3. Also requests the Secretariat, in consultation with the Investment Committee, to provide the final report for the consideration of the Board at its seventeenth meeting; and
4. Notes that the review of the structure and effectiveness of the independent Technical Advisory Panel should take into consideration outcomes of the review of the initial proposal approval process.

The Board, having considered document GCF/B.15/13 titled “Consideration of funding proposals”:

1. Takes note of the following funding proposals:
   
   1. Funding proposal 028 titled “Business Loan Programme for GHG Emissions Reduction” by XacBank LLC, as contained in document GCF/B.15/13/Add.11/Rev.01;
   2. Funding proposal 029 titled “SCF Capital Solutions” by the Development Bank of Southern Africa, as contained in document GCF/B.15/13/Add.12/Rev.01;
   3. Funding proposal 030 titled “Catalyzing Private Investment in Sustainable Energy in Argentina – Part 1” by the Inter-American Development Bank, as contained in document GCF/B.15/13/Add.13/Rev.01;
   4. Funding proposal 033 titled “Accelerating the Transformational Shift to a Low- Carbon Economy in the Republic of Mauritius” by the United Nations Development Programme, as contained in document GCF/B.15/13/Add.06 and 18;
   5. Funding proposal 034 titled “Building Resilient Communities, Wetlands Ecosystems and Associated Catchments in Uganda” by the United Nations Development Programme, as contained in document GCF/B.15/13/Add.07 and 18;
   6. Funding proposal 035 titled “Climate Information Services for Resilient Development in Vanuatu (Van CIS RDP)” by the Secretariat of the Pacific Regional Environment Programme, as contained in document GCF/B.15/13/Add.08 and 18;
   7. Funding proposal 036 titled “Pacific Islands Renewable Energy Investment Program” by the Asian Development Bank, as contained in document GCF/B.15/13/Add.09 and 18; and
   8. Funding proposal 037 titled “Integrated Flood Management to Enhance Climate Resilience of the Vaisigano River Catchment in Samoa” by the United Nations Development Programme, as contained in document GCF/B.15/13/Add.10 and 18;
2. Decides to approve funding proposal 028 for the amount of USD 20,000,000, submitted by XacBank LLC, subject to the conditions set out in annex III and in the respective term sheet set out in annex IV;
3. Also decides to approve funding proposal 029 for the amount of USD 12,222,222, submitted by the Development Bank of Southern Africa, subject to the conditions set out in annex III and in the respective term sheet set out in annex IV;
4. Further decides to approve funding proposal 030 for the amount of up to USD 133,000,000, submitted by the Inter-American Development Bank, subject to the conditions set out in annex III and in the respective term sheet set out in annex IV;
5. Decides to approve funding proposal 033 for the amount of USD 28,210,000, submitted by the United Nations Development Programme, subject to the conditions set out in annex III and in the respective term sheet set out in annex IV;
6. Also decides to approve funding proposal 034 for the amount of USD 24,140,000, submitted by the United Nations Development Programme, subject to the conditions set out in annex III and in the respective term sheet set out in annex IV;
7. Further decides to approve funding proposal 035 for the amount of USD 22,953,000, submitted by the Secretariat of the Pacific Regional Environment Programme, subject to the conditions set out in annex III and in the respective term sheet set out in annex IV;
8. Decides to approve funding proposal 036 for the amount of USD 17,000,000, submitted by the Asian Development Bank, subject to the conditions set out in annex III and in the respective term sheet set out in annex IV;
9. Also decides to approve funding proposal 037 for the amount of USD 57,718,000, submitted by the United Nations Development Programme, subject to the conditions set out in annex III and in the respective term sheet set out in annex IV;
10. Requests the Co-Chairs to compile a list of policy matters arising from the consideration of funding proposals at the fifteenth meeting of the Board for inclusion in the report of the meeting;
11. Also requests the Co-Chairs to present a proposal to address these matters for the Board’s consideration at its sixteenth meeting;
12. Reaffirms that pursuant to annex VII to decision B.07/03, the Executive Director or his designee is authorized to negotiate and enter into legal agreements on behalf of the GCF with accredited entities and other parties involved in respect of funding proposals approved by the Board, taking into account any condition set by the Board in this decision and in the decision accrediting the relevant accredited entity; and
13. Authorizes the Secretariat to disburse fees for each funded project/programme approved by the Board as per the disbursement schedule to be agreed in the funded activity agreement in accordance with the interim policy on fees for accredited entities adopted by the Board pursuant to decision B.11/10.

The Board, having considered document GCF/B.15/15/Rev.01 titled “Competitive process for the selection of the Permanent Trustee” and annex II to the aforementioned document:

1. Requests the Secretariat to submit to the Board at its sixteenth meeting;
   
   1. Detailed terms of reference for the selection of the Permanent Trustee for the GCF in accordance with UNFCCC decision 1/CP.16 (paras. 104 – 107), as well as subsequent UNFCCC decisions on this matter, the Governing Instrument for the GCF (paras. 6, 18(o), 24, 25 and, 27) and relevant Board decisions; and
   2. A detailed plan for the competitive procedure for the selection of the Permanent Trustee; and
2. Also requests the Secretariat to take into account in developing the terms of reference of the procedure:
   
   1. The need for the assets of the GCF to be covered by the appropriate privileges and immunities; and
   2. The legal and institutional requirements of the contributors.

The Board, having considered document GCF/B.15/16 titled “Consideration of accreditation proposals”:

1. Takes note with appreciation of the efforts that accredited entities are making in order to address their accreditation conditions as listed in annex V;
2. Also takes note of the accredited entities with accreditation conditions fulfilled and closed as determined by the Accreditation Panel and listed in annex V;
3. Further takes note with appreciation of the assessments conducted by the Secretariat and the Accreditation Panel contained within the relevant annexes for the following applicants:
   
   1. Applicant 043 (APL043) is the Foreign Economic Cooperation Office (FECO) of the Ministry of Environmental Protection of China, based in China, as contained in annex VI;
   2. Applicant 044 (APL044) is the Korea Development Bank (KDB), based in the Republic of Korea, as contained in annex VII;
   3. Applicant 045 (APL045) is PT Sarana Multi Infrastruktur (PT SMI), based in Indonesia, as contained in annex VIII;
   4. Applicant 046 (APL046) is the Central American Bank for Economic Integration (CABEI), based in Honduras, as contained in annex IX;
   5. Applicant 047 (APL047) is Fundación Avina (Fundación Avina), based in Panama, as contained in annex X;
   6. Applicant 048 (APL048) is Société de Promotion et de Participation pour la Coopération Economique (PROPARCO), based in France, as contained in annex XI; and
   7. Applicant 049 (APL049) is the World Wildlife Fund, Inc. (WWF), based in theUnited States of America, as contained in annex XII;
4. Accredits applicants APL043, APL044, APL045, APL046, APL047, APL048 and APL049 pursuant to paragraph 45 of the Governing Instrument for the GCF, and subject to, and in accordance with, the assessment by the Accreditation Panel contained in the relevant annexes for each of the applicants. A summary of the recommended accreditation types and conditions and/or remarks, if any, for each applicant is contained in annex XIV
5. Takes note with appreciation of the assessment conducted by the Secretariat and the Accreditation Panel contained within the relevant annex for the following applicants seeking to upgrade its accreditation type:
   
   1. Conservation International Foundation (CI), based in the United States of America, as contained in annex XIII;
6. Agrees to upgrade the accreditation type of Conservation International Foundation contained in decision B.10/06, paragraph (ix), subject to, and in accordance with, the assessment by the Accreditation Panel contained in annex XIII. A summary of the recommended upgrade in accreditation type and conditions and/or remarks, if any, is contained in annex XIV;
7. Takes note that, pursuant to decision B.08/03, paragraph (k), the Secretariat, in consultation with the Accreditation Panel, is proposing that the eligibility to apply under the fast-track accreditation process be extended to those entities listed in annex XV; and
8. Decides that those entities referred to in annex XV are also eligible to apply under the fast- track accreditation process for the standards of the GCF in accordance with decision B.08/03, paragraph (f), for entities accredited by the Adaptation Fund, and decision B.08/03, paragraph (g), for entities under the Directorate-General for International Development and Cooperation.

Two limited distribution decisions were adopted under this agenda sub-item:

1. DECISION B.15/10 on accreditation master agreements; and
2. DECISION B.15/11 also on accreditation master agreements.

The Board, having considered document GCF/B.15/19 titled “Independent Redress Mechanism Unit work plan & budget for 2017”:

1. Approves the work plan and budget of the Independent Redress Mechanism Unit for 2017 as contained in document GCF/B.15/19 and annex XVI to this document (total budgeted amount of USD 999,141), respectively;
2. Invites the Head of the Independent Redress Mechanism Unit to consult with the Ethics and Audit Committee in the implementation of the work plan, including the consultation process, as appropriate;
3. Authorizes the Head of the Independent Redress Mechanism Unit to undertake consultations on the revised terms of reference for the Independent Redress Mechanism in accordance with decision B.13/24, and present a draft revised terms of reference for the Board’s consideration at its sixteenth meeting; and
4. Also authorizes the Head of the Independent Redress Mechanism Unit to undertake consultations on the detailed guidelines and procedures for the operation of the Independent Redress Mechanism, and present a draft of the same for the Board’s consideration no later than at its eighteenth meeting.

The Board, having considered document GCF/B.15/20 titled “Draft 2017 workplan and budget for the Independent Integrity Unit”:

Approves the work plan and budget of the Independent Integrity Unit for 2017 as contained in document GCF/B.15/20, and annex XVII to this document (total budgeted amount of USD 1,017,791), respectively.

The Board, having reviewed document GCF/B.15/21 titled “Administrative budget of the Green Climate Fund for 2017”:

1. Takes note of the original recommendation of the Budget Committee to approve a total administrative budget for the calendar year 2017 of USD 45,666,356;
2. Approves an administrative budget of the Green Climate Fund for the period from 1 January 2017 to 31 December 2017 in the amount of USD 43,401,071, including USD 3,125,835 in staff costs approved by decision B.05/20 (annex XVIII to this document); and
3. Requests the Secretariat to submit a 2017 work plan and any required budget adjustments for the consideration of the Board at its sixteenth meeting.

The Board, having considered document GCF/B.15/22 (limited distribution) titled “Options for the operationalization of the Fund’s Administrative Tribunal”:

1. Decides to recognize the jurisdiction of the administrative tribunal of the International Labour Organization in respect of disputes involving a member of staff of the Secretariat or any of the independent accountability units;
2. Recognizes that judgments handed down by the administrative tribunal of the International Labour Organization in respect of staff of the Secretariat and the independent accountability units will be legally binding on the GCF;
3. Requests the Executive Director to take the necessary steps to notify the Governing Body of International Labour Organization of the Board’s decision to recognize the jurisdiction of the administrative tribunal of the International Labour Organization;
4. Also requests the Secretariat to notify the Board once the Governing Body of International Labour Organization has approved of the Board’s decision on this matter and the arrangements for addressing disputes involving a member of staff of the Secretariat or any of the independent accountability units have become operational;
5. Decides, pending the approval referred to in paragraph (d) above, that any disputes involving a member of staff of the Secretariat or any of the independent accountability units which have exhausted all internal dispute settlement procedures without resolution shall be referred to international arbitration, to be determined by a sole arbitrator with expertise in international administrative law;
6. Requests the Secretariat to make the necessary arrangements for such international arbitration as a matter of urgency; and
7. Decides that the GCF shall bear all administrative costs in connection with such arbitration, including the arbitrator’s fees and relevant institutional costs but excluding the staff member’s legal costs, unless the arbitrator determines otherwise.

The Board:
Elects Mr. Ayman Shasly and Mr. Ewen McDonald as the Co-Chairs for a period of one year.

The Board, having reviewed document GCF/B.15/23 titled “Dates and venues of following meetings of the Board”:

Decides that:

1. The sixteenth meeting of the Board will be held from Tuesday, 4 April 2017, to Thursday, 6 April 2017, in Songdo, Incheon, Republic of Korea;
2. The seventeenth meeting of the Board will be held from Tuesday, 4 July 2017, to Thursday, 6 July 2017, in Songdo; with these dates to be confirmed at the sixteenth meeting of the Board; and
3. The eighteenth meeting of the Board will be held from Tuesday, 3 October 2017, to Thursday, 5 October 2017, in Songdo, with these dates to be confirmed at the seventeenth meeting of the Board.